March 30 (Reuters) - Gold rose for a second straight session on Monday as safe-haven demand picked up, although prices were headed for a monthly decline as the Middle East conflict sparked inflation concerns and expectations of higher global interest rates.
Spot gold rose 1.6% to $4,564.00 per ounce by 8:51 a.m. ET (1251 GMT) after hitting its lowest level since November early last week.
U.S. gold futures for April delivery gained 1.5% to $4,594.00.
"The war is still running hot and there's no resolution in sight and that's pushing gold prices higher due to safe-haven demand... Market focus in the near-term will be on the war, crude oil prices, bond yields, and the U.S. dollar index," said Jim Wyckoff, senior analyst at Kitco Metals.
Iran fired waves of missiles at Israel and vowed to "punish the aggressor" as Israeli forces pounded Tehran, while oil prices rose after Yemen's Houthis entered the conflict.
Gold has fallen more than 13% so far in March, putting the metal on track for its worst monthly performance since 2008, as surging energy prices have heightened inflation concerns, prompting markets to reassess their interest rate expectations.
Gold is often used as a hedge against inflation and geopolitical uncertainty but does not yield interest, making it less attractive when interest rates remain high.
Investors will be watching remarks from U.S. Federal Reserve Chair Jerome Powell and New York Fed President John Williams later on Monday for further policy signals.
"I think Powell will walk a fine line and try to be neutral. But in case his comments happen to be hawkish, gold could come under pressure, and if dovish, then prices will rally," said Wyckoff.
A series of economic data is due this week, including U.S. job openings, retail sales, the ADP employment report and nonfarm payrolls.
Among other metals, spot silver rose 2.5% to $71.36 per ounce. Spot platinum gained 3% to $1,919.23 and palladium climbed 4.3% to $1,436.56.
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Alexander Smith
